Regarding the fact that the special mission committee of the Liberal Democratic Party, which discusses financial resources for defense spending, will discuss the extension of the redemption period of government bonds, Finance Minister Suzuki asked how the market would react to the extension of the redemption period from the perspective of fiscal discipline. I showed a cautious attitude that I should consider it.
The government has set a rule to repay the issued national bonds over 60 years, and allocates 1.6%, which is about 1/60 of the outstanding balance, to debt redemption expenses in the annual budget.
The special mission committee of the Liberal Democratic Party, which discusses the financial resources for increasing the defense budget, plans to review this rule and discuss the pros and cons of extending the redemption period of government bonds and securing financial resources.
Regarding this, Finance Minister Suzuki said at a press conference after the cabinet meeting on the 20th, "Even if the '60-year redemption rule' is reviewed, if policy costs increase, it will be necessary to issue the same amount of government bonds as the additional amount in the general account. will increase the issuance of the country as a whole.”
After that, Minister Suzuki said, "The '60-year repayment rule' has a part that protects Japan's fiscal discipline. We have to think carefully about how the market will react if this rule is abolished." showed a good attitude.
Defense Minister Hamada "Expects discussions on stable financial resources"
At a press conference after the cabinet meeting, Defense Minister Hamada said, "I would like to refrain from answering with prejudice about the consideration of the Liberal Democratic Party, but I hope that the ruling party will further deepen discussions on stable financial resources for increasing defense-related expenses in the future. In any case, what is necessary in the future is to carefully explain to the public the contents of the five-year project and budget."